Electronics Manufacturing Services (EMS) stocks rallied as the government waived customs duties on key components until 2029. Meanwhile, Kalyan Jewellers surged 17.5% following a positive outlook from Citigroup on its asset-light expansion model. These moves highlight investor focus on government policy shifts and brokerage-backed growth strategies.
Indian equity markets saw significant movement on July 9, 2026, driven by sector-specific policy changes and positive analyst commentary. Benchmark indices, including the Nifty 50 and BSE Sensex, trended higher mid-session as investors reacted to government incentives for domestic manufacturing and updated outlooks for consumer-facing businesses.
Customs Duty Relief for EMS Players
The government announced a waiver of basic customs duty on select components used in electronics manufacturing. This policy, which remains effective until March 31, 2029, is designed to reduce the cost of imported raw materials for local producers and support the government's Production-Linked Incentive (PLI) initiatives. The market reaction was swift, with companies in the Electronics Manufacturing Services (EMS) space seeing substantial gains and increased trading volumes. Avalon Technologies led the rally with an 8% gain, while Syrma SGS Technology rose 5.65% and Cyient DLM moved up 5.16%. Kaynes Technology, Amber Enterprises, and Dixon Technologies also recorded notable increases, reflecting investor optimism regarding improved profit margins as input costs potentially decline.
Kalyan Jewellers Rallies on Asset-Light Strategy
Kalyan Jewellers India Ltd. experienced a sharp jump of approximately 17.5%, reaching an intraday high of ₹440. This momentum followed an optimistic report from Citigroup, which highlighted the company's shift toward an asset-light business model. Analysts suggest this strategy could help the company reduce debt and improve its Return on Capital Employed (RoCE), a key metric measuring how effectively a company uses its capital to generate profit. The stock's performance reflects investor confidence in the company's ability to scale operations while maintaining balance sheet efficiency.
Other Market Developments
Market activity extended beyond manufacturing and retail, with several other notable movers. Dr. Reddy's Laboratories shares declined by 6.5% following an official statement regarding supply delays for its semaglutide product, linked to a quality issue with an active pharmaceutical ingredient. The company confirmed there was no impact on patient safety. Conversely, GM Breweries shares rose 6% after its first-quarter results for fiscal year 2026-27 showed an expansion in EBITDA margin to 5.8%. Blue Jet Healthcare gained 4.3% as it moved forward with a Qualified Institutional Placement (QIP) to raise fresh capital, and Natco Pharma advanced nearly 3% after announcing a ₹2,500 crore investment to expand manufacturing operations in South Africa.
Investors should track whether the customs duty exemptions lead to sustained margin improvements in upcoming quarterly results for EMS firms. Additionally, the execution of Natco Pharma's overseas expansion and the impact of quality-related supply delays for Dr. Reddy's will be key monitorables in the coming weeks.